Why is my acceptance potential so low?

ferry

Just curious really
I might be in the market for a short term 2k loan but a Moneysupermarket Smart Search only threw up 5 potential lenders and only the AA top as being 7/10 likely.

I seem to satisfy the main criteria I believe-
on elect roll 12 years
own home with mortgage
No adverse credit history -in fact its virually perfect
Full time employed
£26k joint income
2 CC's/7000 total debt in operation not maxed with payments up to date

Just been accepted for a new 0% CC but should have gone the loan route.This being my only credit application in last 6 months
Am I missing anything?

Cheers
F

Mags_cat

What's your available credit to income ratio?

If you already have £7000+ credit available (used or not) plus a new credit card that might mean you're approaching 50% of your income (13k).

Lenders these days seem to be thinking that 50% is about the limit they're prepared to let people get to. Or at least it seems that people with a higher ratio are turned down much more often.

KingElvis

26k joint income with bills to pay and 7k debt already probably hits the nail smack on the head.

Not only that but the amount you have available (?) but not spent would also send me screaming and jumping out the window etc.

26k joint earnings is (like it or not) pretty low for such large debts already.

bargainbetty

If the loan is in both names, then you have to include all debts of both as well as income. If it is just yours, then you cannot include your partner's income.

Your salary, halved, less your existing debt, is generally about as much as you can borrow now on an unsecured loan. It's all changed.... check the maths for you as an individual or your both as a couple.

If you don't mind us asking, what do you want £2k for? Can you make use of the 0% card (empty one of your existing debts onto it, and swap the others onto low-life-of-balance etc to free up money rather than taking on more debt?